No improvement in Infosys business outlook: Deutsche

Deutsche cites Balakrishnan as also saying high exposure to discretionary spending and negative operating leverage are likely to hurt revenue growth and margins in the near term, though a weaker rupee more than offsets the impact of these headwinds.

"In our view, it could take longer for the company to return to high growth. We thus advise against investing in it for short-term outperformance," Deutsche Bank adds in the note dated on Tuesday.

Infosys shares are up 8.7% this month as of Tuesday's close.

Last week Bank of America-Merrill Lynch also flagged outlook concerns, saying Infosys' discretionary IT spending has not seen a pick-up.

Infosys shares down 1.2% as of 2:50 pm.